Beyond Pension Debts, Tennessee Owes $10.2B In Public Employee Retirement Benefits

Net Liabilities In Tennessee For Other Post-employment Benefits, Which Consist Mainly Of Health Care Obligations To Retired Public Employees, Stood At About $10.2 Billion In Fiscal Year 2019. 

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Published March 16, 2021

The Center Square –

Net liabilities in Tennessee for other post-employment benefits (OPEBs), which consist mainly of health care obligations to retired public employees, stood at about $10.2 billion in fiscal year 2019, according to a new analysis from the Reason Foundation. 

With a population of 6,829,174, the state posted a per capita OPEB liability of $1,490, which represents the 27th-highest value among the 50 states and the District of Columbia, the Reason study found. 

In total, these liabilities amount to 6% of the U.S. gross domestic product, the researchers said. These debts are also geographically concentrated, with 15 government jurisdictions representing 50% of the total, the study found. 

In addition, any plan to expand Medicare to those under age 65 would result in the federal government assuming a large share of state and local OPEB liabilities, according to the Reason Foundation. This effectively would transfer wealth to states such as New York, New Jersey, Delaware and Connecticut, the researchers found.

Meanwhile, states such as South Dakota don’t offer such OPEB benefits, and other agencies are ending such benefits for new employees, according to the analysis.

Fiscal-Year 2019 State and Local OPEB Liabilities:

State	OPEB Debt	Population	OPEB per Capita	Rank (OPEB per Capita)
New York	$313,920,086,646	19,453,561	$16,137	1
New Jersey	$101,478,261,992	8,882,190	$11,425	2
Delaware	$8,657,258,594	973,764	$8,891	3
Hawaii	$12,393,188,491	1,415,872	$8,753	4
Connecticut	$28,336,538,083	3,565,287	$7,948	5
Massachusetts	$47,523,075,688	6,892,503	$6,895	6
Maryland	$38,942,487,377	6,045,680	$6,441	7
Illinois	$73,679,046,562	12,671,821	$5,814	8
Louisiana	$23,581,901,691	4,648,794	$5,073	9
California	$183,614,985,491	39,512,223	$4,647	10
Vermont	$2,868,911,672	623,989	$4,598	11
North Carolina	$41,342,789,101	10,488,084	$3,942	12
Texas	$110,800,605,210	28,995,881	$3,821	13
Rhode Island	$3,370,956,915	1,059,361	$3,182	14
Michigan	$30,953,054,436	9,986,857	$3,099	15
South Carolina	$15,792,680,769	5,148,714	$3,067	16
Pennsylvania	$38,539,986,433	12,801,989	$3,010	17
District of Columbia	$2,120,897,000	750,749	$2,825	18
Alabama	$12,177,481,861	4,903,185	$2,484	19
Georgia	$24,075,621,495	10,617,423	$2,268	20
New Hampshire	$2,973,172,943	1,359,711	$2,187	21
Maine	$2,924,651,882	1,344,212	$2,176	22
New Mexico	$4,499,598,848	2,096,829	$2,146	23
Wyoming	$1,137,947,859	578,759	$1,966	24
Kentucky	$7,988,647,139	4,467,673	$1,788	25
Alaska	$1,293,880,851	731,545	$1,769	26
Tennessee	$10,172,688,062	6,829,174	$1,490	27
West Virginia	$2,670,376,857	1,792,147	$1,490	28
Wisconsin	$7,122,825,062	5,822,434	$1,223	29
Nevada	$3,497,420,356	3,080,156	$1,135	30
Florida	$22,837,941,233	21,477,737	$1,063	31
Ohio	$11,592,626,048	11,689,100	$992	32
Washington	$6,799,221,754	7,614,893	$893	33
Arkansas	$2,495,413,962	3,017,804	$827	34
Missouri	$5,044,035,010	6,137,428	$822	35
Virginia	$5,716,050,225	8,535,519	$670	36
Oklahoma	$2,199,836,311	3,956,971	$556	37
Oregon	$2,144,405,865	4,217,737	$508	38
Minnesota	$2,742,244,233	5,639,632	$486	39
Nebraska	$889,275,137	1,934,408	$460	40
Colorado	$2,584,825,548	5,758,736	$449	41
Iowa	$1,379,321,377	3,155,070	$437	42
Arizona	$2,322,647,300	7,278,717	$319	43
Mississippi	$789,643,944	2,976,149	$265	44
Montana	$280,486,910	1,068,778	$262	45
Kansas	$568,013,022	2,913,314	$195	46
Indiana	$1,245,566,292	6,732,219	$185	47
Idaho	$254,923,323	1,787,065	$143	48
Utah	$375,298,520	3,205,958	$117	49
South Dakota	$75,933,081	884,659	$86	50
North Dakota	$62,375,435	762,062	$82	51